Correlation Between CSG Systems and ViaSat

Can any of the company-specific risk be diversified away by investing in both CSG Systems and ViaSat at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CSG Systems and ViaSat into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSG Systems International and ViaSat Inc, you can compare the effects of market volatilities on CSG Systems and ViaSat and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CSG Systems with a short position of ViaSat. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and ViaSat.

Diversification Opportunities for CSG Systems and ViaSat

0.27

Correlation Coefficient

CSG Systems  ViaSat

Modest diversification

The 3 months correlation between CSG and ViaSat is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and ViaSat Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViaSat Inc and CSG Systems is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CSG Systems International are associated (or correlated) with ViaSat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViaSat Inc has no effect on the direction of CSG Systems i.e., CSG Systems and ViaSat go up and down completely randomly.

Pair Corralation between CSG Systems and ViaSat

Given the investment horizon of 90 days CSG Systems is expected to generate 8.63 times less return on investment than ViaSat. But when comparing it to its historical volatility, CSG Systems International is 2.5 times less risky than ViaSat. It trades about 0.06 of its potential returns per unit of risk. ViaSat Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  937.00  in ViaSat Inc on April 27, 2025 and sell it today you would earn a total of  532.00  from holding ViaSat Inc or generate 56.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CSG Systems International  vs.  ViaSat Inc

CSG Systems International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, CSG Systems is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ViaSat Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ViaSat Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ViaSat unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSG Systems and ViaSat

The main advantage of trading using opposite CSG Systems and ViaSat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, ViaSat can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ViaSat will offset losses from the drop in ViaSat's long position.

The idea behind CSG Systems International and ViaSat Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.